So since I am not the most well-versed in the trade-rules-cap-free-agent stuff. Why wouldn't Wash just sign Hump directly? He was a free agent right? What is the benefit to them?
They should be out of cap space by now. Pierce was the MLE signing i believe.
Ok thanks, so the TPE is used by a team who is so close to the cap that they can't absorb the incoming player's salary.
A trade player exception (TPE) is created when a team trades out more salary than it takes back in a trade. So for example, TEAM A trades 3 players worth 10 million to TEAM B. TEAM B trades 4 players worth 7 million to TEAM A. TEAM A has a TPE of 3 million. That 3 million TPE will expire one year from the date of the trade and can't be combined with players or other TPE's, but you don't have to use all of it. So TEAM A at any time during that year can acquire a player worth 2 million without trading anything else, which still leaves 1 million on the TPE (which still expires at the same time). TEAM A in a later trade can acquire another player worth 1 million into the rest of the TPE. TPE's do not have to be used and often expire.
thanks TP for you!
Please explain: Based on the example you gave -- Team A sends 10M to Team B who returns 7M creating a 3M TPE -- how is it that salary mismatches like this are acceptable? I would think there has to be some additional criterion to create a TPE, otherwise any high salary could be traded for any low salary. Does it have to be that a team involved is under the cap?
I don't understand.
Unfortunately the original example was a little off. TPE's are only given when a single player is traded for another single player or no player.
That said, in the hypothetical example, it would essentially work like this:
Per the CBA, if you are trading out a player (or players) and are above the salary cap, you can take back the following salary, as long as the incoming salary does not leave you above the luxury tax line:
If you're sending out less than $9.8 million in salary, you can take back up to 150% of the outgoing salary.
If you're sending out between $9.8 million and $19.6 million, you can take back up to $5 million more than you send out.
If you're sending out more than $19.6 million, you can take back 125% + $100,000 of what you send out.
If you are already above the tax line, or the trade would place you above the tax line, you can take back 125% + $100000 of what you send out.
(Note: These rules can be found here:
http://www.cbafaq.com/salarycap.htm#Q84Accordingly, if one team takes back more than it sends out, per the rules above, another team must be sending less. Again, if the teams are sending out only a single player each***, the other team would be granted an exception to make up the difference. They can then use this exception for up to 1 year to acquire a player or players equal to that exception +$100,000.
So, in the example given, if Team B will remain beneath the luxury tax after the trade, and they send out a player who's salary is $7 million, they can receive up to 150%, or $10.5 million, in return. Since team A sends out $10 million, team A receives an exception of $3 million, to make up the difference in salaries. Team B, even though it could have received up to $10.5 million back, receives no exception to make up the difference on their end.
*** - There are ways to get around this, but that's not an introductory course
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